Which Item Below Is Not a Valid Reason for Selling

question 29

Multiple Choice

Which item below is not a valid reason for selling a security?

• A)Its price has increased to such an extent that it is now overvalued.
• B)Its alpha has increased.
• C)The investor has an opportunity for a tax swap.
• D)The investor's objectives change.

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Definitions:

Willpower

The ability to control impulses and make decisions that align with long-term goals, resisting short-term temptations.

Neoclassical Economics

An economic approach that focuses on the determination of goods, outputs, and income distributions through supply and demand factors.

Net Benefit

The total positive results or gains received from a decision or action after subtracting all costs associated with that decision or action.

Rational Decisions

The process of making choices that result in the optimal level of benefit or utility for an individual.